Why Castrol is bullish on Brazil’s offshore market

Castrol, the premium lubricants division of British oil giant BP, is optimistic about the growth of the Brazilian offshore market. 

In addition to the dozens of FPSOs that will be installed over the next 10 years, the company plans to tap into strong demand for subsea equipment.

Rafael Clemente, Castrol's strategic account manager, speaks to BNamericas about the local business outlook.

BNamericas: What are the prospects for the Brazilian market, given the expected increase in the FPSO fleet?

Clemente: We're very excited. The Brazilian upstream offshore market is the fastest growing in the world. Considering the scenario of FPSOs starting to operate in 2024 and probable and possible new FPSOs by 2034, the estimate is that up to 37 new production units could start operating here in the next 10 years, representing around 20% of the global market for new FPSOs.

BNamericas: Does the company plan new investments to meet the country's demand?

Clemente: We have a production plant in Brazil with a capacity that, according to our analysis, is currently sufficient for growth. But yes, we’re willing to invest if necessary. 

BNamericas: Has Castrol conducted any studies or projects to reduce the lubricants’ carbon footprint?

Clemente: A real example of what you're talking about is the carbon-neutral credentials of our range of subsea control fluids. We also have a growing range of biodegradable lubricants. 

BNamericas: What are production control fluids used for?

Clemente: Today, basically all FPSOs use this fluid, which is applied in a hydraulic system that transfers energy to drive the subsea equipment on the seabed. 

BNamericas: Do you also supply lubricants for offshore rigs?

Clemente: Yes, we recently signed a large supply contract for drilling rigs. And then there are the support vessels for the platforms. This whole maritime market is going to move proportionally. There’s a lot of growth.

In terms of subsea equipment, there are plans to install more than 200 wet Christmas trees in Brazil by 2028, each connected to an oil well. That's how big the market is.

It's important to remember that the Brazilian market is diversifying, with new players operating and investing.